Note 12. Contingent Liabilities and Commitments

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Text Block]

Note 12. Contingent Liabilities and Commitments

In July 2011, the Company executed a lease (the “Lease”) with Brandywine Operating Partnership, L.P. (Brandywine), a Delaware limited partnership for a 10,870 square foot premises located in Lawrenceville, New Jersey.  In October 2011, the Company relocated its offices to Lawrenceville, New Jersey from Columbia, Maryland.  The lease has a term of 66 months and provides for 6 months rent free, with the first monthly rent payment of approximately $23,000 due in April 2012.  Also, as required by the Lease, the Company provided Brandywine with an irrevocable and unconditional standby letter of credit for $250,000, which the Company secured with an escrow deposit at its banking institution of this same amount.  The standby letter of credit will be reduced by $50,000 on each of the 19th , 31st and 43rd months from the initial term, with the remaining $100,000 amount remaining until the Lease Term has expired.

Following is a summary of the future minimum payments required under leases that have initial or remaining lease terms of one year or more as of June 30, 2012:

	Capital Leases		Operating Leases
For the year ending June 30:
2013	$	67,817	$	278,091
2014		45,212		283,526
2015		–		288,961
2016		–		294,396
Thereafter		–		249,104
Total minimum lease payments		113,029	$	1,394,078
Less amounts of lease payments that represent interest		13,696
Present value of future minimum capital lease payments		99,333
Less current obligations under capital leases		57,120
	$	42,213